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CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

A member's conduct would be legal in the jurisdiction where she works but would violate the Code and Standards. Which action is most appropriate for the member?

She should refrain from the conduct. Members and candidates must not engage in conduct that violates the Code and Standards even if it is legal, because legal compliance is only the minimum threshold of acceptable action, and notifying an employer does not remove the violation.

  1. AProceed, because compliance with local law is sufficient.
  2. BRefrain from the conduct, because members must not engage in conduct that violates the Code and Standards even if it is legal.Correct
  3. CProceed after informing her employer of the conflict between the two.

Explanation

Members and candidates must not engage in conduct that constitutes a violation of the Code and Standards, even though it may otherwise be legal. Legal compliance is only the minimum threshold. Informing the employer does not cure the violation.

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